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k ltd purchased 50 lakh worth of land for a factory site . the co. demolished an old building on the property and sold the material for 1 lakh the co. incurred additional cost & realized salvaged proceeds during March as follows: legal fees for purchase contract and recording ownerships 2,50,000 title guarantee insurance 1,00,000 cost for demolition of building 5,00,000 compute the balance to be shown in the land account on 31 march balance sheet .
Answers (5)
Thread Starter
Neetu dalalI also have no answer
Hint : add the expenses which we capitalize into asset and reduce salvage value try solving with this hint if you don't understand any point let us know here
roshini reddy
Hint : add the expenses which we capitalize into asset and reduce salvage value try solving with this hint if you don't understand any point let us know here
Can you please send me the solution according to you
Thread Starter
Neetu dalalCan you please send me the solution according to you
the final answer is 57,50,000
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